Akzo Nobel Announces Preliminary Financial Results for 2017

Coco

2018-02-12

Akzo Nobel recorded growth in the financial year 2017 in its sections decorative paints, particularly in Asia, and specialty chemicals. The costs of the transformation into a focused paints and coatings company, including the separation of specialty chemicals, is within expectations. The full-year and the fourth quarter 2017 report will be published on March 8, 2018.

The internal separation of the Specialty Chemicals business is complete. A full separation of Specialty Chemicals, either via a private sale or a legal demerger, remains on track for April 2018. As a result, the Specialty Chemicals business will be reported as discontinued operations.

Revenue, including discontinued operations, for full-year 2017 expected to be up 3% (up 4% excluding currency impact) at around €14,575 million (2016: €14,197 million)

EBIT, including discontinued operations, for full-year 2017 expected to be around €1,525 million (2016: €1,502 million). EBIT excludes identified items totaling around €130 million mainly related to the transformation of AkzoNobel into a focused Paints and Coatings company, including the separation of Specialty Chemicals.

The transformation of AkzoNobel into a focused Paints and Coatings company, including the separation of Specialty Chemicals, is progressing well and the associated one-off costs are within expectations. Phase one of creating a fit for purpose Paints and Coatings organization, announced in October 2017, is on track to achieve €110 million savings in 2018, contributing directly towards delivering the 2020 financial guidance. Various measures to mitigate current market challenges, including increased selling prices and cost discipline, also continue to be implemented.

As previously announced, AkzoNobel will publish a report for the full-year and the fourth quarter 2017 on Thursday, March 8, 2018. This is later than previous years due to the financial reporting process relating to the separation of Specialty Chemicals.